To buy or not to buy?

yyt

I am currently renting and thinking about buying a house/flat. I have read the free Mortgage download on this website and it has been very helpful, but as I am/will be a first time buyer am still a little confused and undecided.

I don't have much savings and have been advised by my friends that I should consult an Independent Financial Advisor (but this costs money). I was planning to contact a "fee-free" and "whole of the market" mortgage broker per advice on the download, but what exactly is the difference between an IFA and Mortgage Broker? Am I better off going to one or the other?

So far my plan is to seek advice (either from an IFA or Mortgage broker) and find out how much I can afford to borrow, then decide whether I should buy a place or continue to rent (and try to save a bit more for a deposit). Or am I better off just getting on the property ladder now as I'd be paying rent anyway....it's so confusing! Hopefully someone can help!

homer_j_3

the difference between an IFA and MA is that MA's specialise in mortgage and mortgage protection where IFA's deal with investment based products. Some IFA's wont deal with mortgages so you are best to ask. You shouldnt have to pay for advice so you seem to be aware that you need to ask.

If you want to post some details in terms of income you have and if you have any debts etc and maybe I can give you a starting point?

JoeK_3

homer_j wrote: »

the difference between an IFA and MA is that MA's specialise in mortgage and mortgage protection where IFA's deal with investment based products.
?

Some IFA's deal with:

1) Protection
2) Retirement Planning
3) Investments
4) Savings
5) Mortgages
6) Tax Planning
7) Corporate Affairs

etc.

homer_j wrote: »

Some IFA's wont deal with mortgages so you are best to ask.

True!

homer_j wrote: »

You shouldnt have to pay for advice so you seem to be aware that you need to ask.

Normally you will not need to pay for the initial consultation but costs could be involved after that, subject to how the client prefers to pay and how the IFA is prepared to work on your case.

homer_j wrote: »

If you want to post some details in terms of income you have and if you have any debts etc and maybe I can give you a starting point?

We are on here to try to help and guide

JoeK

yyt

Thanks homer_j and JoeK for your replies.

Our combined income is £67k (there's 2 of us). Outgoings for the month are about £2375 (this includes all rates bills, credit cards, loans, council tax, car, food, entertainments, etc) and is being over prudent to allow for unforeseen circumstances!

I've prob got about £4k saved up, but am not sure whether to use this as a deposit (providing we decide to buy) or to use it towards all the fees (arrangement, legal, survey, etc). This kinda brings me to my next question which is, because I have so little saved up, am I better off saving a bit more before we decide to buy? The place we are renting at the mo is up for sale at £140k (which is why we have been prompted to think about buying a little sooner than we thought!)

jamesd

If you have 7000 between you you'd have enough for a 5% deposit and that's enough to go with the mortgage on the current place. You won't need that until completion in 2-4 months so you probably have time to save the difference. You could use an arranged overdraft or personal loan to pay for the fees over 12 months if you haven't saved enough for them by the time they are needed.

Looks as though it's entirely practical for you to go for it now, with a few months of keen saving between now and owning the place.